The three major U.S. stock indexes closed higher. Bitcoin rose nearly 5 percent and recovered part of its previous decline, which helped spread risk appetite in technology shares.

Near the close of trade on Dec. 2 in New York, the Dow Jones Industrial Average ended up 185.13 points, or 0.39 percent, at 47,474.46. The S&P 500 gained 16.74 points, or 0.25 percent, to 6,829.37. The Nasdaq rose 137.75 points, or 0.59 percent, to 23,413.67.

There were no major catalysts in the market. But bargain buying flowed into the cryptocurrency market and bitcoin rebounded, which supported risk appetite in equities. Bitcoin is now up nearly 5 percent after rising more than 7 percent earlier in the session.

AI and semiconductor themes led the market. The Philadelphia Semiconductor Index rose 1.84 percent. Among technology firms with a market capitalisation above 1 trillion dollars, Broadcom gained 1.19 percent and Tesla was little changed. All others advanced.

Amazon unveiled its latest AI chip, Trainium 3. The custom ASIC designed by Amazon is expected to be deployed rapidly in the company’s data centres from early next year.

After Amazon released the new AI chip, major AI-related stocks gave back most of their intraday gains. The intensified competition in AI chips was reflected in share prices.

Intel jumped 8.66 percent. It gained momentum on expectations it could produce Apple’s low-end M series chips from 2027.

Donald Trump formally introduced Hassett as a potential next Federal Reserve chair, but the market showed little reaction. The view that Hassett is a strong contender was already priced in.

Hassett could lead interest rate cuts, but concerns remain that his strong loyalty to Trump could raise questions about the Fed’s independence. This could undermine confidence in the U.S. economy in the long term.

Baek Yun-min, an analyst at Kyobo Securities, said short-term yields fell as expectations grew that dovish Kevin Hassett could become the next Fed chair. Baek said U.S. monetary policy easing expectations could keep reversing the rise in yields. But Baek said the decline in yields will be limited because investor sentiment cannot easily improve amid the lack of strong positive catalysts.